1. Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold. Please state whether we are under/over applied and by how much.

Beginning Raw Materials Inventory	$20,000
Ending Raw Materials Inventory	15,000
Beginning Work in Process Inventory	16,000
Ending Work in Process Inventory	13,000
Beginning Finished Goods Inventory	25,000
Ending Finished Goods Inventory	22,000
Purchases	120,000
Direct Labor	55,000
Actual Manufacturing Overhead	95,000
Applied Manufacturing Overhead	92,000